The economic analysis of product diversity
AbstractProduct diversity is a long-debated issue in economics. We remind that mainly two questions have been given answers : (a) To which extent does the market provide diversity ? (b) Why should this diversity be promoted ? The first one stands out as the core of most articles on product diversity, whereas the second one is more evoked than really deepened. However, the economic analysis of product diversity stands out as a paradox. Actually, the definition of diversity itself has been somewhat forgotten. We try to give ways to overcome this absence so that product diversity can eventually be concretely assessed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number r05083.
Length: 20 pages
Date of creation: Dec 2005
Date of revision:
Contact details of provider:
Postal: 106 - 112 boulevard de l'Hôpital, 75647 Paris cedex 13
Phone: 01 44 07 81 00
Fax: 01 44 07 81 09
Web page: http://mse.univ-paris1.fr/
More information through EDIRC
Product diversity; theory of consumer choice; monopolistic competition.;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-01 (All new papers)
- NEP-COM-2006-01-01 (Industrial Competition)
- NEP-IND-2006-01-01 (Industrial Organization)
- NEP-MIC-2006-01-01 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- d'Aspremont, C & Gabszewicz, Jean Jaskold & Thisse, J-F, 1979.
"On Hotelling's "Stability in Competition","
Econometric Society, vol. 47(5), pages 1145-50, September.
- Dixit, Avinash K & Stiglitz, Joseph E, 1975.
"Monopolistic Competition and Optimum Product Diversity,"
The Warwick Economics Research Paper Series (TWERPS)
64, University of Warwick, Department of Economics.
- Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Simon P. Anderson & Andre de Palma & Jacques-Francois Thisse, 1987. "Demand for Differentiated Products," Discussion Papers 726, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Greenberg, Edward & Barnett, Harold J, 1971. "TV Program Diversity-New Evidence and Old Theories," American Economic Review, American Economic Association, vol. 61(2), pages 89-93, May.
- Kranenburg, Hans van & Hagedoorn, John & Pennings, Jacqueline, 2004. "Measurement of international and product diversification in the publishing industry," Open Access publications from Maastricht University urn:nbn:nl:ui:27-4264, Maastricht University.
- Suen, Wing, 1991. "The Value of Product Diversity," Oxford Economic Papers, Oxford University Press, vol. 43(2), pages 217-23, April.
- Patrick Llerena & Vanessa Oltra, 2000.
"Diversity of Innovative Strategy as a Source of Technological Performance,"
DRUID Working Papers
00-1, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Llerena, Patrick & Oltra, Vanessa, 2002. "Diversity of innovative strategy as a source of technological performance," Structural Change and Economic Dynamics, Elsevier, vol. 13(2), pages 179-201, June.
- Patrick LLERENA & Vanessa OLTRA, 2001. "Diversity of innovative strategy as a source of technological performance," Working Papers of BETA 2001-12, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Stern, Nicholas, 1972. "The optimal size of market areas," Journal of Economic Theory, Elsevier, vol. 4(2), pages 154-173, April.
- Weitzman, Martin L, 1994. "Monopolistic Competition with Endogenous Specialization," Review of Economic Studies, Wiley Blackwell, vol. 61(1), pages 45-56, January.
- ANDERSON, Simon P. & de PALMA, André & THISSE, Jacques-François, .
"Demand for differentiated products, discrete choice models, and the characteristics approach,"
CORE Discussion Papers RP
-824, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Anderson, Simon P & de Palma, Andre & Thisse, Jacques-Francois, 1989. "Demand for Differentiated Products, Discrete Choice Models, and the Characteristics Approach," Review of Economic Studies, Wiley Blackwell, vol. 56(1), pages 21-35, January.
- Perloff, Jeffrey M & Salop, Steven C, 1985.
"Equilibrium with Product Differentiation,"
Review of Economic Studies,
Wiley Blackwell, vol. 52(1), pages 107-20, January.
- Perloff, Jeffrey M & Salop, Steven, 1984. "Equilibrium with product differentiation," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt4cq0m6s3, Department of Agricultural & Resource Economics, UC Berkeley.
- Baxter, William F, 1974. "Regulation and Diversity in Communications Media," American Economic Review, American Economic Association, vol. 64(2), pages 392-99, May.
- Raymond Deneckere & Michael Rothschild, 1986.
"Monopolistic Competition and Preference Diversity,"
684, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Weitzman, M.L., 1991.
Harvard Institute of Economic Research Working Papers
1553, Harvard - Institute of Economic Research.
- Scherer, F M, 1979. "The Welfare Economics of Product Variety: An Application to the Ready-to-Eat Cereals Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 28(2), pages 113-34, December.
- Silverberg, Gerald & Dosi, Giovanni & Orsenigo, Luigi, 1988. "Innovation, Diversity and Diffusion: A Self-organisation Model," Economic Journal, Royal Economic Society, vol. 98(393), pages 1032-54, December.
- Cooper, Russell & Ross, Thomas W, 1984. "Prices, Product Qualities and Asymmetric Information: The Competitive Case," Review of Economic Studies, Wiley Blackwell, vol. 51(2), pages 197-207, April.
- Patrick Cohendet & Arndt Sorge & Patrick Llerena, 1992. "Technological diversity and cohérence in Europe : an analytical overview," Revue d'Économie Industrielle, Programme National Persée, vol. 59(1), pages 9-26.
- Lancaster, Kelvin, 1975. "Socially Optimal Product Differentiation," American Economic Review, American Economic Association, vol. 65(4), pages 567-85, September.
- Donsimoni, Marie-Paule & Geroski, Paul & Jacquemin, Alexis, 1984. "Concentration Indices and Market Power: Two Views," Journal of Industrial Economics, Wiley Blackwell, vol. 32(4), pages 419-34, June.
- Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, 03.
- Hans van Kranenburg & John Hagedoorn & Jacqueline Pennings, 2004. "Measurement of International and Product Diversification in the Publishing Industry," Journal of Media Economics, Taylor and Francis Journals, vol. 17(2), pages 87-104.
- GABSZEWICZ, Jean J., .
"Blue and red cars, or blue cars only? A note on product variety,"
CORE Discussion Papers RP
-524, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Gabszewicz, Jean Jaskold, 1983. "Blue and Red Cars, or Blue Cars Only? A Note on Product Variety," Economica, London School of Economics and Political Science, vol. 50(198), pages 203-06, May.
- Meade, James E, 1974. "The Optimal Balance between Economies of Scale and Variety of Products: An Illustrative Model," Economica, London School of Economics and Political Science, vol. 41(164), pages 359-67, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lucie Label).
If references are entirely missing, you can add them using this form.